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Australian (ASX) Banks Industry Analysis

UpdatedSep 25, 2025
DataAggregated Company Financials
Companies15
  • 7D-1.7%
  • 3M-2.3%
  • 1Y16.3%
  • YTD11.4%

Over the last 7 days, the Banks industry has dropped 1.7%, driven by Westpac Banking declining 2.0%. Over the past 12 months, the industry was up 16%. Earnings are forecast to grow by 3.4% annually.

Industry Valuation and Performance

Has the Australian Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Sep 2025AU$651.0bAU$95.6bAU$31.7b14.9x20.5x6.8x
Sat, 23 Aug 2025AU$672.5bAU$95.7bAU$32.3b15.1x20.8x7x
Mon, 21 Jul 2025AU$653.3bAU$94.6bAU$31.8b15.2x20.6x6.9x
Wed, 18 Jun 2025AU$637.1bAU$94.6bAU$31.8b15x20x6.7x
Fri, 16 May 2025AU$607.2bAU$94.6bAU$31.8b13.9x19.1x6.4x
Sun, 13 Apr 2025AU$559.1bAU$93.2bAU$31.7b12.2x17.6x6x
Tue, 11 Mar 2025AU$557.6bAU$93.3bAU$31.7b12.2x17.6x6x
Thu, 06 Feb 2025AU$608.3bAU$92.5bAU$31.4b14.2x19.3x6.6x
Sat, 04 Jan 2025AU$590.6bAU$92.5bAU$31.4b13.8x18.8x6.4x
Mon, 02 Dec 2024AU$610.7bAU$92.5bAU$31.4b13.9x19.4x6.6x
Wed, 30 Oct 2024AU$582.2bAU$91.8bAU$31.6b12.8x18.4x6.3x
Fri, 27 Sep 2024AU$559.4bAU$91.8bAU$31.5b12.4x17.7x6.1x
Sun, 25 Aug 2024AU$550.1bAU$91.8bAU$31.6b12.2x17.4x6x
Tue, 23 Jul 2024AU$535.8bAU$91.7bAU$31.6b11.2x16.9x5.8x
Thu, 20 Jun 2024AU$521.2bAU$91.6bAU$31.8b10.4x16.4x5.7x
Sat, 18 May 2024AU$501.8bAU$91.6bAU$31.8b11x15.8x5.5x
Mon, 15 Apr 2024AU$491.8bAU$92.6bAU$32.7b11.1x15x5.3x
Wed, 13 Mar 2024AU$498.8bAU$92.5bAU$32.7b10.8x15.2x5.4x
Fri, 09 Feb 2024AU$477.6bAU$92.8bAU$33.2b10.5x14.4x5.1x
Sun, 07 Jan 2024AU$455.2bAU$92.8bAU$33.2b8.3x13.7x4.9x
Tue, 05 Dec 2023AU$426.5bAU$92.8bAU$33.2b8x12.9x4.6x
Thu, 02 Nov 2023AU$409.9bAU$91.0bAU$32.5b7.8x12.6x4.5x
Sat, 30 Sep 2023AU$422.4bAU$91.0bAU$32.6b8.1x13x4.6x
Mon, 28 Aug 2023AU$415.3bAU$91.0bAU$32.6b8.3x12.7x4.6x
Wed, 26 Jul 2023AU$426.0bAU$91.0bAU$32.4b8.3x13.1x4.7x
Fri, 23 Jun 2023AU$412.0bAU$91.0bAU$32.4b8.2x12.7x4.5x
Sun, 21 May 2023AU$411.3bAU$91.0bAU$32.4b8.1x12.7x4.5x
Tue, 18 Apr 2023AU$422.1bAU$89.2bAU$31.5b9.6x13.4x4.7x
Thu, 16 Mar 2023AU$408.6bAU$88.9bAU$31.4b8.5x13x4.6x
Sat, 11 Feb 2023AU$459.8bAU$87.6bAU$30.9b11x14.9x5.3x
Mon, 09 Jan 2023AU$434.8bAU$87.6bAU$30.9b10.2x14.1x5x
Wed, 07 Dec 2022AU$446.9bAU$87.6bAU$30.9b10.8x14.5x5.1x
Fri, 04 Nov 2022AU$459.4bAU$88.4bAU$30.3b11.1x15.2x5.2x
Sun, 02 Oct 2022AU$397.1bAU$87.7bAU$29.9b11.1x13.3x4.5x
Price to Earnings Ratio

13.3x


Total Market Cap: AU$397.1bTotal Earnings: AU$29.9bTotal Revenue: AU$87.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Banks Industry Price to Earnings3Y Average 15.9x202320242025
Current Industry PE
  • Investors are optimistic on the Australian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 20.5x which is higher than its 3-year average PE of 15.9x.
  • The 3-year average PS ratio of 5.5x is lower than the industry's current PS ratio of 6.8x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 2.9% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Australian Financials industry?

AU Market-0.36%
Financials-1.58%
Banks-1.72%
Regional Banks1.00%
Diversified Banks-1.77%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 14.5x.
    • Analysts are expecting annual earnings growth of 21.6%, which is higher than its past year's earnings growth of 0.5% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 16.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings growth rate of 0.5% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 3.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
BOQ Bank of QueenslandAU$7.130.6%
+AU$26.3m		14.4%PB0.8x
BEN Bendigo and Adelaide BankAU$12.890.08%
+AU$5.6m		8.3%PB1.1x
BBC BNK BankingAU$0.301.7%
+AU$593.8k		-9.1%PB0.3x

Latest News

BEN
AU$12.89
Bendigo and Adelaide Bank
7D
0.08%
1Y
8.3%

Rising Funding Costs Will Compress Net Interest Margins In Future

Bendigo and Adelaide Bank’s consensus price target was marginally raised to A$11.78, reflecting a slight increase in forecast future P/E while revenue growth outlook remained steady. What's in the News Held Analyst/Investor Day event.
CBA
AU$163.74
Commonwealth Bank of Australia
7D
-0.4%
1Y
21.9%

Digital Disruption Will Challenge Market Shares While Tech Drives Progress

The modest increase in Commonwealth Bank of Australia's future P/E ratio alongside steady revenue growth forecasts suggests a slight uplift in market sentiment, reflected in the consensus analyst price target rising from A$117.82 to A$120.47. What's in the News Commonwealth Bank of Australia (CBA) has extended its share buyback plan duration until August 12, 2026 (Key Developments).
WBC
AU$37.91
Westpac Banking
7D
-2.0%
1Y
17.2%

Rising Tech Costs And Competition Will Pressure Bank Earnings In Australia

The slight increase in Westpac Banking’s consensus price target to A$31.49 is primarily supported by a higher future P/E multiple, reflecting improved market expectations for earnings growth. What's in the News HSBC is preparing to sell its Australian retail banking arm, valued in the billions, with $40 billion in loans and $30 billion in deposits.
BOQ
AU$7.13
Bank of Queensland
7D
0.6%
1Y
14.4%
ANZ
AU$32.78
ANZ Group Holdings
7D
-0.2%
1Y
6.6%
NAB
AU$43.22
National Australia Bank
7D
-0.3%
1Y
14.9%

Digital Payments And Urban Expansion Will Unlock Opportunities

National Australia Bank’s consensus price target has increased, primarily reflecting improved revenue growth forecasts and a modest expansion in net profit margin, raising the fair value estimate from A$33.53 to A$36.11. What's in the News NAB appointed Inder Singh, former QBE Insurance CFO, as Group CFO and Group Executive, Strategy, effective March 2026, pending regulatory approval.
JDO
AU$1.75
Judo Capital Holdings
7D
-0.6%
1Y
2.6%

Advanced Banking Platform Will Unlock SME Digital Demand

The consensus analyst price target for Judo Capital Holdings increased marginally, supported by stable discount rate and future P/E assumptions, resulting in a slight fair value rise from A$2.07 to A$2.09. Valuation Changes Summary of Valuation Changes for Judo Capital Holdings The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from A$2.07 to A$2.09.
BFL
AU$7.40
BSP Financial Group
7D
-3.9%
1Y
21.1%
KSL
AU$1.24
Kina Securities
7D
-0.8%
1Y
19.9%

Digital Banking And LNG Projects Will Shape PNG Future

Kina Securities' consensus Analyst Price Target was unchanged at A$1.60, while its significantly lower future P/E ratio suggests improved earnings expectations or a lower valuation multiple. What's in the News Kina Securities Limited announced an ordinary dividend of AUD 0.045 per share for the six months ended June 30, 2025.
BBC
AU$0.30
BNK Banking
7D
1.7%
1Y
-9.1%
MYS
AU$4.10
MyState
7D
-1.0%
1Y
9.6%